Payroll Dictionary
Inheritance
As distinguished from a bequest or devise, an inheritance is property acquired through laws of descent and distribution from a person who dies without leaving a will. Property so acquired takes as its basis, for gain or loss on later disposition or for depreciation, the fair market value of the property at the date of death of the decedent from whom it is acquired. An inheritance of property does not give rise to taxable income, but the income from an inheritance does. And if the inheritance is of income from property, such income is taxable.